Competition Bureau Challenges CREA over Real Estate Listings

The Canadian Competition Bureau is taking action against the Canadian Real Estate Association (CREA), challenging its rules regarding the listing of real estate properties on the ubiquitous Multiple Listing Service (MLS). Currently, in order to have a property listed on MLS, a real estate vendor must engage the services of a real estate agent registered with the CREA, not only to list the property, but also to act as the agent for the vendor in the sale of the property. In addition, vital information included in the listings is available to registered realtors, and not to the general public. The Competition Bureau considers these practices of the CREA may be anti-competitive, and has announced that it will challenge the CREA’s practices in proceedings before the Competition Tribunal. Behind the regulatory maneuvering lie important changes in the industry brought on by developments in the IT sector. Just as with the travel industry, the increased availability of information via the Internet has prompted some agents to circumvent the CREA’s tight control on listing information (see an earlier E-TIPS® article, “Ontario Court Sanctions Real Estate Broker for Disseminating Data” December 16, 2009, Vol 8 No 13). In the US, a more intensive use of IT to dis-intermediate real estate agents has not only driven down agents’ fees, but has also encouraged the much wider distribution of marketplace data. For the text of the Competition Bureau’s announcement, visit: http://competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03196.html For a news article commenting on developments in relation to the US marketplace, see: http://tinyurl.com/yj64yga Summary by: James Kosa